Can we get an update?
Here’s where we stand right now…
my attorney has contacted their attorney and relayed the following…
- BB&T failed to do a title search.
- BB&T failed to do an appraisal.
- BB&T loaned more than 1/3 of the value.
- BB&T failed to acquire PMI on the loan.*
- BB&T approved this 30 year note on an 81 year old man.*
*not legalities nor procedures but it does point to carelessness.
My attorney says that the chances are good to get the entire thing thrown out and the chances are excellent to get the loan reduced to 1/3 of the value minus all fees, interest, charges, etc. as well as having the amount due reduced by all of the the monies paid from the time of the loan until step dad’s suicide.
We’ll see how it shakes out…
Frankly all the bank deserves at this point is whatever your stepdad paid to date, the empty shotgun shell, and all your attorney bills. Such sloppiness is ridiculous and should have the FTC breathing down their necks.
If it is a local (state) bank it is handled by a state agency. If a national bank, it would be handled by the Comptroller of the Currency.
Well it’s been a while, kidney stones and colitis eat deeply into your time it seems. :eek:
Here is where we stand:
Under NC Real Estate law NO ONE can borrow money against property when one of the owners dies. As soon as death comes, the property is “frozen” in this regard. The spouse is entitled to 1/3 value AFTER the estate is probated NOT before; debts may need to be paid from the sale of the property. Since the money was loaned AFTER the death of my mother but BEFORE her estate was probated, legally the Deed of trust BB&T executed is invalid. They would have a hard time going back to any DoT that was held previously as the new would have cancelled out the old.
Our attorney has written all this up with nice footnotes to the statutes hereunto pertaining, etc.
Waiting to see what BB&T says now.
Thanks for the update, good luck.
Frankly at this point the bank should be paying court costs to the court for wasting its time and paying your lawyer even if he is working Pro Bono.
One thought: even if the loan is thrown out, does your stepfather have any other heirs? Ignoring the whole loan situation, 1/3 of the house’s value would (I presume) pass to those heirs.
So if the outcome is that the loan balance is reduced to 1/3 the value of the house, the bank gets the money. If the loan is thrown out entirely, the 1/3 value goes to his other heirs. So don’t spend too much of your own money trying to get it all thrown out.
Doesn’t matter… he doesn’t even have a share until after her estate is probated. It’s still open and he is dead. end of story for him.
Newest up date as of this afternoon. My lawyer wrote to the banks lawyers and they agreed and informed BB&T that their DoT has no standing as he was not the legal owner of the house at the time the loan was made and they have stopped the foreclosure proceedings.
BUT… (and this is so much bullshit) they can still contest getting shut out of any proceeds from the sale of the house because… they have a recorded DoT against it! We’ll fight all the way. They screwed up, why should we pay for their mistake?
Like I asked before, if it is shown that the bank gave an improperly securitized loan does that eliminate the obligation to pay that loan back (though now they have nothing to foreclose on if you don’t) and thus become a debt against his estate?
Or is it really the law that if a bank gives a loan and the underlying security turns out to not be eligible that this is a lottery win for the recipient of the loan?
The recipient of the loan is dead as Moses.
The problem is that the bank improperly issued a loan secured with property that the loan recipient had no clear title to. Those people who do have clear title, either the mother’s estate, or the expected beneficiaries of that estate, can show clear evidence of harm to their own financial interests because of the illegal actions of the bank.
The bank has every right to recover from the dead guy’s estate - but one fo the beauties of estates is that in most states once the estate is out of money, that’s the end of it. You don’t transfer debts on an intestate estate to the presumed beneficiaries. if the estate runs out of cash before the bank gets their money back - sucks to be the idiot who approved the loan. If you don’t think that is the sort of thing that often garners damage awards plus punitive awards you must be looking at a different legal system than that I see here in the US.
This isn’t a fucking lottery, you nitwit. It’s trying to enforce some goddamned accountability on the sort of practices that contributed to the small, minor, global economic turndown we’ve been in.
It’s not a lottery win for the recipient. They’re still responsible for repaying the loan. But if they default, the bank does not have the option of making themselves whole by foreclosing on the house, and therefore are at a much higher risk of taking a large loss.
Can the estate default though? Assuming their aren’t a lot of other creditors wouldn’t the bank be near the front of the line for stepdads 1/3rd when they sell the house?
We got a buyer and “went to the mattresses.” The final order to all parties concerned was that:
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BB&T did NOT have the right to loan any money against the house UNTIL the estate was probated. (No s**t Sherlock!)
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BB&T DID have a note against the house at the date of my mother’s death.
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BB&T is entitled to that amount but no more. (36k down the toilet for BB&T.)
Everybody’s satisfied but the bank. Follow correct procedures and the law and it just MIGHT work out for ya!
The closing attorneys and their staffs were amazed and pleased at how close and connected all of the heirs were in this situation. They’d NEVER had any dealings where there were no arguments or hard feelings; everyone had the same goal and desires. I told them if they’d met my step-dad they would have seen WHY we were all together. Hope he’s nice and warm right now.
The First only guarantees that the government cannot stand in the way of you saying something publicly. It does not protect you from libel, slander or the consequences of breaching a contract by verbal or written declaration.
As far as the bank going after step-dad’s estate, thy’re S.O.L. there too. Estate is closed and there was no money anyway. All of the monies from the loan as well as the 50K life insurance he cashed in on are gone. We speculate that the underage girl he was screwing got it all. She was “playing him like a violin” according to his own words. Dumbass took pics of her and him together doing it and kept them on his computers. When he ran out of money she called the police. They took his laptop and he shot himself later that same night. No word on whether he had pics of himself and the man he was having sex with. :dubious::eek:
:(:smack:
One last item… Total lawyer fees for us, just under $400.00.
Had Prepaid Legal (now Legal Shield) for years, finally paid off for us!
Sucks to be them… Oh wait, no it doesn’t! Maybe they should pay attention next time.
Hurray that you finally got that nightmare resolved!